W. P. Carey Group Acquires Four Manufacturing Facilities in Germany and the U.S. from The Leipold Group
New York, NY – July 28, 2008 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that CPA®:16 – Global, its publicly held non-traded REIT affiliate, has provided approximately $18 million in sale-leaseback financing to The Leipold Group through the acquisition of one U.S. and three German manufacturing facilities. The three German facilities are located in Dransfeld, Bünde and Wolfach, which also serves as the company’s global headquarters. The U.S. facility is located in Windsor, Connecticut.
The Leipold Group manufactures precision parts for the electrical engineering, mechanical engineering, automotive, telecommunications and medical technology industries. Leipold’s parts are used in a vast range of products such as lighting systems, smoke alarms, air conditioning units and radar systems. Established in 1919, Leipold continues to be a family-owned business with approximately 650 employees in Europe and the U.S.
“Working with W. P. Carey has been a positive experience for us,” said Dr. Karl-Heinz Schiefer, President and Chief Executive Officer of Leipold. “The sale-leaseback transaction with W. P. Carey is providing the necessary capital for us to pay down a substantial amount of debt and improve our liquidity. This, in turn, will allow us to further develop our presence in growing markets, including the fluid and gas technology industry. Our solid capital structure will be key to our ongoing growth initiatives.”
“Leipold is another prime example of a German ‘mittelstand’ or middle market company using the sale-leaseback as a form of financing,” said Edward V. LaPuma, President of W. P. Carey International. “Sale-leaseback transactions have really taken off in Germany over the past few years, especially now that traditional sources of financing are becoming more difficult to find. Leipold is positioned as one of the top precision parts manufacturers in Europe. With its potential for continuing expansion, the company represents the type of investment opportunity we look for. We are thrilled to have worked with Leipold and look forward to having them as a long-term tenant.”
W. P. Carey also completed two transactions with German companies earlier this month: a $58 million sale-leaseback with IT distributor Actebis AG and a $30 million sale-leaseback with reusable plastic packaging product manufacturer Schoeller Arca Systems.
W. P. Carey & Co. LLC
W. P. Carey & Co. LLC provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio worth more than $10 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of income-generating, non-traded REITs help companies and private equity firms release capital tied up in real estate assets. Now in our 35th year, the W. P. Carey Group’s real estate holdings are highly diversified, comprised of more than 850 commercial and industrial assets spanning 28 industries and 14 countries. www.wpcarey.com
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This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the Company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the Company, reference is made to the Company's filings with the Securities and Exchange Commission.
